A FEW ROTTEN EGGS WON'T SPOIL THE BUNCH

Sunday 7/27/2008 5:16 PM CT

By Dave Harris

Earnings continue this week, and the big report is the July jobs data. This mixture of hourly earnings, unemployment rate and non-farm payrolls take center stage Friday. Expectations are for a higher unemployment rate and further job losses.

Despite the sour tone these days, I think the corporate data so far has been pretty good. I liked 3M's (MMM) strong quarterly sales and full year earnings forecast of 10 percent growth. I would buy the stock here at just over $70. But, Xerox (XRX) the printer maker delivered mixed results. Revenue rose 8 percent in the quarter, yet earnings are down significantly. Paper maker Kimberly-Clark (KMB) still has issues with material pricing. I was also disappointed with American Express (AXP) with a 38 percent decline in the quarter.

But don't let a few rotten eggs spoil the bunch. A number of companies, namely energy, reported nicely. Excelon (EXC) had a good second quarter, and Halliburton (HAL) reported per share earnings at .68 cents…not too shabby! Let's not forget Caterpillar (CAT). The maker of farm and construction equipment is doing well enough overseas to make up for the economic weakness here. They had a 34 percent rise in profit in the quarter, with a higher than expected profit guidance.

This week, the earnings tidal wave continues with Kraft (KFT), mall REIT Simon Property Group (SPG) and Verizon (VZ) reporting Monday. Tuesday, watch for NCR Corp (NCR), media conglomerate Viacom (VIA), and Waste management (WMT). Wednesday, it's Comcast (CMCSA), coffee maker Starbucks (SBUX), and Disney (DIS). Drug store CVS (CVS), Kellogg's (K), and Motorola (MOT) will report on Thursday. Then Friday it's energy company Chevron (CVX).